TM - October 2007 - (Page 45) Coupled with a growing skills gap and shortage of qualified workers plaguing today’s organizations (especially in specialized fields such as IT), this phenomenon is leading companies to realize no organization — regardless of size, industry or sector — is immune to the looming “talent crisis.” To insulate themselves from the potentially devastating effects such a crisis could bring, organizations need to prepare their workforce and succession strategies today. Forward-thinking organizations realize succession planning is an ongoing process focused on continuously identifying, preparing and developing individuals to take over key roles when employees leave the workforce because of promotions, retirements, resignations, etc. By moving succession planning to the forefront of the corporate agenda and taking a proactive approach to leadership management and employee development today, these organizations are laying the foundation for smooth leadership transitions in the future, thereby sidestepping the talent crisis. Although developing a succession management strategy is crucial for weathering the talent crisis, companies must realize effective succession management requires more than just identifying and replacing ”critical” employees. The key is finding the right person for every job, with the ultimate goal of aligning the skills, experience and professional goals of current employees with the organization’s current and future business needs. Executive teams often plan what their organization will look like as they develop and refine their business strategy and plans. A common mistake corporations make during this planning process is failing to consider how their employees’ career goals and objectives map to corporate planning and goals. This “top-down” approach can result in redundancy, decreased productivity and increased employee turnover within organizations because the talent base is not aligned to support both employee goals and corporate objectives simultaneously. Succession planning is not, nor should it be, practiced as a one-way, “top-down” process that identifies and assigns talent based on the needs of the organization without providing visibility into and consideration for an individual employee’s career goals. Organizations are recognizing the long-term benefits — for both employees and organizations — of replacing traditional hierarchical structures with more-linear organization models. This “bottom-up” approach to succession planning gives employees greater control over their careers by allowing them to actively participate in developing and charting their career path. Empowering Employees to Drive Succession Planning the global economy. As a result, today’s organizations and employees are experiencing the “flattening” of corporate structures. With the move away from traditional hierarchical models, there are fewer management layers and not as many promotional opportunities. Employees used to view their careers as one-way paths, controlled by their managers and executive team, but with the trend toward flatter organizational structures, employees now have an opportunity to directly influence their career path by driving their own skills growth, setting their career goals and proactively preserving and increasing their knowledge and expertise. A “bottom-up” approach to succession planning increases mobility for employees within an organization by allowing them to define their goals and career paths. This two-way approach allows employees to own their career path, and it gives them an opportunity to prepare and position themselves for specific roles within the organization. With visibility into additional opportunities, employees can align their development and career paths to meet the skill and timing requirements of the organization when key positions need to be filled. For the bottom-up approach to work successfully, an organization must empower its employees to take an active role in their career development. It also requires employees to take the initiative in seeking learning and development opportunities that increase their employability, promotability and overall mobility within the organization. More employees are expressing an interest in advancing their learning and initiating their own career management. Managing their career requires employees to be responsible for their performance in their current job while they prepare themselves to meet the new challenges of other opportunities. In return, employers commit to helping employees qualify for higher-level responsibilities by assisting them in charting their career direction and by providing tools and support that encourage employee development. Implementing a win-win succession plan requires organizations to understand, respect and commit to fostering the career expectations of their employees. Hybrid Career and Succession Planning Many organizations implement both a top-down succession planning program and a bottom-up career planning program to encourage development efforts among managers and employees. Historically, succession planning programs have focused on grooming and cultivating a pool of internal candidates whom organizations can tap when positions become vacant. When looking at potential candidates to fill vacant positions, organizations are realizing it is equally important for them to understand the long-term October 2007 Over the past two decades, expansion, consolidation, increased competition, outsourcing and new regulatory mandates have caused dramatic shifts in talent management magazine www.TalentMgt.com 45 http://www.TalentMgt.com
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